Down -11.42% in 4 Weeks, Here's Why PennyMac (PFSI) Looks Ripe for a Turnaround

Group 1 - PennyMac Financial (PFSI) has experienced a significant decline of 11.4% over the past four weeks, but it is now in oversold territory, indicating a potential for trend reversal [1] - Wall Street analysts have strong consensus that PFSI will report better earnings than previously predicted, with a 7% increase in consensus EPS estimates over the last 30 days [3] - The Relative Strength Index (RSI) for PFSI is currently at 25.08, suggesting that heavy selling may be exhausting itself, which could lead to a price rebound [3] Group 2 - PFSI holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating strong potential for a turnaround [4]